Bitcoin has dropped below $80,000, with $712 million in liquidations over the past 24 hours.
Retail traders were hit hardest, as market stress from Trump’s policies and economic uncertainty fueled sell-offs.
Bitcoin’s correlation with tech stocks suggests further downside if broader markets continue to struggle.
The crypto market has been hit with $712 million in liquidations over the past 24 hours, dragging Bitcoin and major altcoins into a third consecutive day of losses.
According to CoinGlass data, over $535 million in long positions and $176 million in shorts were liquidated, with Bitcoin alone seeing $304 million wiped out.
JUST IN: Bitcoin $BTC must liquidate over $6,000,000,000 in shorts to reclaims $90,000
Bitcoin has dropped 4% in the past 24 hours and is down 11% on the week, now trading under $80,000. The liquidation cascade has also led to a 4% decline in total open interest, which now stands at $87 billion.
Some analysts warn that if Bitcoin fails to hold $80,000, further liquidations could push the price toward $70,000.
“Looking at liquidation heat maps, if BTC falls to $80K or lower, we could see more long positions liquidated, accelerating the drop,” said eToro analyst Simon Peters.
Retail Traders Hit Hard as Trump’s Policies Add to Market Stress
Many of the recent liquidations appear to have been driven by retail traders, rather than institutions. James Toledano, COO of Unity Wallet, noted that many inexperienced investors piled into the market during the “extreme greed” phase in late 2024, fueled by what some dubbed the “Trump Pump.”
“Expectations were too high, and the market is now paying the price,” Toledano added.
Beyond liquidations, broader economic concerns have weighed on Bitcoin’s price. President Donald Trump’s recent refusal to rule out a recession, paired with tariff-driven market uncertainty, has shaken investor confidence.
Bitcoin Reserve Disappointment and Institutional Outflows
Adding to the pessimism, some traders were disappointed by the details of the U.S. Bitcoin Strategic Reserve, which turned out to be nothing more than a repackaging of seized FBI assets—around 200,000 BTC ($16.5 billion) placed under Federal Reserve control.
“It wasn’t the aggressive Bitcoin accumulation some expected,” said Toledano. “That reset expectations, and the market reacted accordingly.”
Meanwhile, Bitcoin ETFs have recorded four consecutive weeks of outflows, totaling $4.5 billion, signaling that institutional investors may also be offloading risk assets.
The Bigger Picture: Bitcoin’s Correlation to Tech Stocks
Some analysts believe the recent downturn has less to do with crypto-specific factors and more to do with broader stock market struggles. The sharp drop in the Nasdaq’s “Magnificent Seven” tech stocks—Google, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—has led to a flight from risk assets, including Bitcoin.
“Bitcoin’s price has historically shown a strong correlation to tech stocks,” said Glen Goodman, author of The Crypto Trader. “When tech struggles, crypto investors tend to flee as well.”
What’s Next for Bitcoin?
If sentiment remains weak, leveraged positions will stay at risk, making further liquidations likely. However, some analysts believe a shakeout of over-leveraged traders could pave the way for a stronger rebound.
“Key indicators to watch are derivatives positioning, spot demand, and institutional flows,” Toledano said. “If risk appetite recovers, BTC could stabilize—or even rally—but if fear continues to dominate, further downside is likely.”
